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Modeling Dynamic Preferences: A Bayesian Robust Dynamic Latent Ordered Probit Model

  • Daniel Stegmueller (a1)


Much politico-economic research on individuals' preferences is cross-sectional and does not model dynamic aspects of preference or attitude formation. I present a Bayesian dynamic panel model, which facilitates the analysis of repeated preferences using individual-level panel data. My model deals with three problems. First, I explicitly include feedback from previous preferences taking into account that available survey measures of preferences are categorical. Second, I model individuals' initial conditions when entering the panel as resulting from observed and unobserved individual attributes. Third, I capture unobserved individual preference heterogeneity both via standard parametric random effects and a robust alternative based on Bayesian nonparametric density estimation. I use this model to analyze the impact of income and wealth on preferences for government intervention using the British Household Panel Study from 1991 to 2007.



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Modeling Dynamic Preferences: A Bayesian Robust Dynamic Latent Ordered Probit Model

  • Daniel Stegmueller (a1)


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